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BREAKING NEWS: Steadfast announces 45% profit boost

Steadfast has announced “strong revenue and earnings growth,” in its 2016 financial year results.

The broker network saw gross written premium placed by Steadfast Network brokers rise by 4.2% to $4.5 billion while underlying revenue increase by 54% to $459.5 million, as NPATA grew 45% to $82m.

The GWP growth placed by brokers was “driven by organic growth and new brokers,” according to a release from the business as organic GWP growth was up 1.5% “due to relatively flat pricing and higher volumes,” the release continued.

Robert Kelly, managing director and CEO of Steadfast, said that the business is “pleased with the solid performance” of Steadfast’s brokers and agencies as the business continues to diversify.

“The acquisitions made in FY15 overall are performing in line with expectations, with the two transformational agency acquisitions performing ahead of expectations,” Kelly said.

“Steadfast Underwriting Agencies now contribute 45% of our earnings, compared with 18% two years ago.”

GWP placed by Steadfast Underwriting Agencies hit $745 million, up 94% compared with FY15 thanks to the agency acquisitions from Calliden and QBE which have “transformed Steadfast Underwriting Agencies into the largest agency group in Australia.”

Kelly noted that two new strategic initiatives, Steadfast Client Trading Platform and Steadfast Underwriting Agencies London ‘super’ binder, have helped the Group over the past year and will “generate upside to our Network and to the Group’s profitability.”

For the coming year, Kelly said that while the market may continue to be flat, the Group expects good organic growth.

“Based on a continued flat pricing environment and no material acquisitions, we expect underlying NPATA of $85m to $90m for FY17,” Kelly continued.

“The majority of this expected growth is organic and includes projected returns from the two new strategic initiatives.”